Tata Motors explores bundling EV, rooftop solar system financing

In a bid to improve the use of renewable energy in charging electric vehicles, Tata Motors Ltd is exploring a combined financing package for its electric vehicle and rooftop solar systems. The company's senior official noted that it is working with Tata Power and Tata Solar on this offering and expects to launch it soon.

“A financing offer for combining rooftop solar and electric vehicles for eight years can become a very promising one.  We are thinking of offering this. We are working with Tata Power and Tata Solar, and hope to launch it soon,” Shailesh Chandra, MD of Tata Passenger Electric Mobility and Tata Motors Passenger Vehicles told reporters today.

From a recent study that Tata Motors did in states, including Rajasthan, Gujarat, Hyderabad and Kerala, that have higher electric vehicle penetration, the company noted that they have noticed a significant linkage between solar rooftop adoption and electric car sales.

“For example, in Ahmedabad, there is a thumb rule that if somebody has a solar rooftop and if one person in the family has to travel 40-50 km a day, they should have an electric car. That kind of a thing has picked up,” Chandra said.

Tata Motors also surveyed all the customers who bought electric vehicles and found that on average 15 percent of electric car buyers have installed rooftop solar panels. Almost 95 percent of the electric cars are charged at home.

Recently, the government has also approved a scheme to assist households in installing rooftop solar systems. The scheme provides an incentive of 60 percent of the cost of 2 kW solar systems and 40 percent of additional system cost for units with 2-3 kW capacity. Households could get a subsidy of Rs 78,000 for 3 kW systems.

Some state governments are providing additional support for residential rooftop solar. Electric cars with residential rooftop solar systems at a subsidized rate could make electric car purchases more lucrative as rooftop charging drastically reduces the cost of electricity for customers.

Chandra noted that currently, 35-37 percent of energy usage for charging electric cars is renewable as 95 percent of the electric cars are charged at home, 15 percent of electric car owners have solar systems and 25 percent of India’s electricity production is from renewable sources.

“By 2030, irrespective of what the grid’s mix is, electric cars will be charged using solar rooftop mostly. This will push renewable energy usage higher. So that is the intent,” Chandra added.